Global Capability Centres - India

From Cost Centres to Catalysts: Rethinking Global Capability Centres in India

Harvard Business Review released a report on the above topic.

Observations from the report are as follows :

India’s Global Capability Centres (GCCs) are undergoing a quiet revolution. Once relegated to back-office support and cost arbitrage, they are now emerging as strategic engines of innovation, resilience, and transformation. This shift is not incidental—it is structural, intentional, and deeply consequential for global enterprises and India’s economic trajectory.

The numbers alone are compelling. With over 1,500 GCCs already operating in India and projections pointing to 2,400 by 2030, the sector is poised to generate $110 billion in value and employ 4.5 million professionals. But the real story lies beyond the metrics. It lies in how GCCs are redefining enterprise boundaries, talent models, and digital capabilities.

At the heart of this transformation is the BFSI sector. Banks and financial institutions, long wary of offshoring core functions, are now entrusting their GCCs with cybersecurity, AI, platform engineering, and regulatory compliance. This is not just a vote of confidence in India’s talent pool—it’s a strategic recalibration of risk, agility, and innovation.

India’s advantage is multifaceted. A deep bench of English-speaking, tech-savvy professionals. A thriving digital public infrastructure. A government that understands the power of ecosystems—from UPI to PLI. And a partner network that enables rapid scaling and coexecution. These are not just enablers; they are accelerants.

But the GCC story is not just about India. It’s about how global enterprises are reimagining their operating models. The rise of agentic AI and digital workforces is reshaping unit economics. GCCs are no longer people-centric alone—they are becoming autonomous, intelligent, and outcome-driven. This shift demands new governance frameworks, talent strategies, and cultural integration.

Consider Ford Business Solutions, which grew from 20 to over 13,000 employees in India. Or Mizuho Americas, which built cyber fusion centers that now anchor its global threat visibility. These are not isolated successes—they are signals of a broader trend: GCCs as centers of excellence, not just centers of execution.

Yet, challenges remain. Attrition, cultural misalignment, and regulatory complexity can erode value. GCCs must be treated as strategic assets, not transactional vendors. Leadership exchange, brand integration, and long-term investment are non-negotiable. Enterprises must embed GCCs into their core—not just their cost structures.

The ROI is clear. Most GCCs achieve breakeven within 15 months. Cost savings range from 30–40%. But the real dividend is strategic: faster innovation cycles, better risk management, and deeper market insights. GCCs are not just cheaper—they are smarter.

India must seize this moment. By positioning itself not just as a destination, but as a partner in transformation. By investing in skilling, infrastructure, and policy coherence. And by ensuring that GCCs are embedded in the national narrative of innovation and inclusion.

For global enterprises, the message is equally clear: the GCC model is no longer optional—it is existential. In a world of polycrisis, supply chain shocks, and digital disruption, GCCs offer resilience, agility, and strategic depth.

The future of GCCs will be defined not by where they are located, but by what they enable. Product development, AI integration, regulatory foresight, and market expansion. These are the new frontiers. And India is uniquely positioned to lead.

But leadership requires vision. It requires enterprises to move beyond cost arbitrage and embrace capability arbitrage. It requires policymakers to align incentives with innovation. And it requires GCCs themselves to evolve—from execution arms to strategic brains.

This is not just a business story. It is a governance story. A talent story. A technology story. And ultimately, a story of how India and the world can co-create value in an age of uncertainty.

GCCs are no longer the back office. They are the future office. And that future is already here.